Religare Broker Research reports

Godrej Agrovet Ltd. (GAVL), part of the conglomerate Godrej group, is an agri-business company operating in five business verticals- animal feed, crop protection, palm oil, dairy and processed foods.

Crompton Greaves Consumer Electricals (CGCE) reported mixed set of numbers in Q2FY19 which was marginally lower than our estimates. Its revenue grew by 8.1% yoy led by 14.6% growth in the Electric Consumer Durables (ECD) segment. However, margins were impacted due to continuous price erosion and higher commodity prices in the lighting segment.

Maruti Suzuki (MSIL) reported better than expected set of numbers considering muted volume growth and higher cost pressures during the quarter. The sales growth (3.1% yoy) was largely led by better product mix and higher other operating income during the quarter. However, EBITDA and PAT de-grew by 6.7% and 9.8% on account of dismal operational performance, higher interest cost and muted growth in other income.

Ambuja Cements Ltd (ACL) reported subdued numbers for Q3CY18. While revenue growth at 12.7% YoY was in line with our estimates, the company disappointed on the profit front with a marginal 1.1% growth in EBITDA and 34.4% YoY decline in PAT. EBITDA margins contracted 158bps YoY to 13.7%, impacted by higher power & fuel and freight cost.

Nifty futures has rolled around 76% vs 63% with respect to last month. Even the open interest for the new November contract is higher by 48 lkh. Fresh short buildup in index or hedging has come into effect. The range for Nifty might be at 9900-10450 and Banknifty at 24000-25600 for first fortnight of November series.

Headquartered in Chennai, Ashok Leyland Ltd. (ALL) is the flagship company of Hinduja Group engaged in manufacturing of commercial vehicles (CV). It is the second largest CV manufacturer in India and the fourth largest manufacturer of buses globally.

Asian Paints Ltd (APL) reported subdued numbers for Q2FY19, below our expectation. Its revenue grew by 8.5% yoy driven by volume growth across various products. Its EBITDA and PAT de-grew by 2% and 3.8% yoy respectively on back of higher input costs and higher interest expense. Further, both EBITDA and PAT margins declined by 184 bps and 140 bps yoy.

Incorporated in 2000, Godrej Consumer Products Ltd (GCPL) is one of the leading FMCG companies in India with strong presence across product segments like Household Insecticides, Soaps, Hair Colours, Liquid Detergents and Air Fresheners.

Cummins is a leader with 40% market share in the diesel engines/gensets industry. Further, it has strong presence in high value and high margin high horse power (HHP) gensets with approximately 62% market share as on FY18 end.

Zee Entertainment Enterprises Ltd. (ZEE) reported better than expected result in Q2FY19. The company delivered strong revenue growth (24.9% yoy) led by growth across segments and an improved operational performance (EBITDA up 37.6% yoy).